ALBUQUERQUE, NM -- (MARKET WIRE) -- Feb 03, 2010 --
EMCORE Corporation (NASDAQ:
EMKR), a
leading provider of compound semiconductor-based components, subsystems and
systems for the fiber optic and solar power markets, announced today it has
entered into a share purchase agreement to create a joint venture with
Tangshan Caofeidian Investment Corporation (TCIC), a Chinese investment
company located in Caofeidian Industry Zone, Tangshan City, Hebei Province
of China. Caofeidian Industry Zone is a fast developing area in the
strategic Bohai Rim Economical Region with a total investment of US$ 26.4
billion, and hosts a large number of corporations and enterprises,
including China Capital Steel, Sinopec, and others.

The agreement provides for TCIC to purchase a sixty percent (60%) interest
in EMCORE's Fiber Optics business (excluding its satellite communications
and specialty photonics fiber optics product lines), which will be operated
as a joint venture once the transaction is closed. The new joint venture
entity will be named EMCORE Fiber Optics, Limited (EFO), and registered in
Hong Kong. The agreement provides for TCIC to pay EMCORE approximately
$27.8 million in cash and provide an additional funding of $27 million to
EFO after the closing.

The Fiber Optics businesses included in this transaction are EMCORE's
telecom, enterprise, cable TV (CATV), fiber-to-the-premises (FTTP), and
video transport product lines. EMCORE will retain the satellite
communications and specialty photonics fiber optics product lines as well
as the satellite and terrestrial solar businesses.

Under the terms of the agreement, EMCORE's Executive Chairman and Chairman
of the Board, Mr. Reuben F. Richards, Jr. will resign his position as
Executive Chairman of EMCORE and will assume the role of CEO for EFO. In
addition, certain other EMCORE senior executives and the employees
currently working for the transferred product lines will be offered
positions with EFO. EMCORE's President and CEO, Dr. Hong Q. Hou, will also
serve as a Director of EFO, providing strategic and operational oversight
to the joint venture.

Tangshan Caofeidian Investment Corporation nominated Dr. Yi Li as Chairman
of the Board for EFO and TCIC will name a CFO to EFO subsequent to the
closing.

Over the next several years, the joint venture will focus on developing a
high volume, low cost manufacturing infrastructure and a local customer
support organization to better serve the expanding customer base in China
and worldwide. Furthermore, TCIC has committed to providing additional
funding support for the JV's future strategic growth through acquisitions.

"This is one of the most transformational transactions in the history of
EMCORE," stated Dr. Hong Hou. "This transaction creates two well
capitalized, industry-leading companies within their respective industries
and will enable EMCORE to focus on growing its photovoltaic and
defense/homeland security businesses. This strategy was put into motion
more than two years ago by our Board of Directors. We are very pleased to
be entering into this joint venture with TCIC and look forward to
continuing to expand our Fiber Optics business and creating value for our
shareholders."

"EMCORE's advanced technology, broad product portfolio, and high-quality
customer base are very impressive. TCIC plans to provide a competitive
fulfillment infrastructure and expand the JV's customer penetration in Asia
by strengthening the China operation." Mr. Wenhong Tang, Vice Mayor of
Tangshan City, further commented, "EMCORE's Fiber Optics business is a
great platform for future growth through accelerated new product
development. We are committed to providing the resources needed to achieve
this vision."

Mr. Richards stated, "This recapitalization allows the Fiber Optics
business to aggressively expand its business penetration to major OEM
customers worldwide, and accelerate new products to market. In addition to
the organic growth, we will also pursue other strategic growth
opportunities in the form of acquisitions to expand our business."

The transaction is expected to close within 90 days pending relevant
government and regulatory approvals and the approvals of the Boards of
Directors of both parties.

In conjunction with the establishment of the joint venture, EMCORE and TCIC
also entered into a supplemental agreement pursuant to which EMCORE agrees
to establish its China terrestrial concentrator photovoltaics (CPV)
manufacturing and operations base in Caofeidian Industry Zone. The
agreement includes a commitment by TCIC to provide EMCORE with the
equivalent of US$3,300,000 in RMB denominated loans, tax and rent
incentives and assistance in developing EMCORE's solar power business in
China.

EMCORE management will address the details of this transaction in its
upcoming December quarter earnings conference call. EMCORE will announce
the details of this earnings call in an upcoming press release, which will
include information on how to access the call.

EMCORE was advised in connection with these matters by Jefferies & Company,
Inc.

About Tangshan Caofeidian Investment Co., Ltd.

Tangshan Caofeidian Investment Co., Ltd. (TCIC) was established in March,
2006 in Caofeidian Industry Zone to provide financial and other supports to
corporations and enterprises within the zone and promote local economic
development. TCIC, under direct administration of Caofeidian Industry
Zone, has funded numerous companies and projects in port, highway, and high
technology areas.

Forward-looking statements:

The information provided herein may include forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking statements
include, but are not limited to, any statement or implication that the
transaction described herein will actually close and will produce the
anticipated results described for EMCORE. Such forward-looking statements
involve risks and uncertainties that, if realized, could materially impair
EMCORE's results of operations, business, and financial condition. These
risks and uncertainties include, but are not limited to, (a) the fact that
the transaction is conditional on the approval of both parties' Boards of
Directors means that the legal obligations of both parties are effectively
unenforceable until such approvals are obtained; (b) the ability of both
parties to satisfy the conditions necessary for the closing of the
transaction, including obtaining the required governmental approvals in
both the United States and the People's Republic of China (c) the ability
of the Joint Venture and EMCORE to successfully transition the transferred
fiber optics and photovoltaic businesses business; (d) the ability of the
Joint Venture to retain critical employees of the transferred business; and
the acceptance by the customers of the transferred business of the Joint
Venture as a supplier; (e) the ability to transition certain key
agreements, including lease arrangements, and (f) EMCORE's ability to
successfully establish its new CPV facility. The forward-looking statements
contained in this news release are made as of the date hereof and EMCORE
does not assume any obligation to update the reasons why actual results
could differ materially from those projected in the forward-looking
statements.